This case is by no means easy to judge or come to a conclusion. A large portion of the award was due to pain and suffering. It is a bit difficult to fully understand the high payout and how the amount was deemed appropriate. It is very difficult to assess a sum for spilled coffee. The jury really considered the time it took to recover and not to mention her treatment expenses. Interestingly enough, Mrs. Liebeck wanted to initially settle out of court for 20,000 dollars, which McDonalds refused. Refusing to settle out of court opened the doors to litigation and ultimately cost McDonalds in this case. The second case that I will analyze is one that involves a pair of missing pants. In the case of Pearson v. Chung, a Washington DC, specifically
Philip J. Cooper v. Charles Austin 837 S. W. 2d 606 (Tenn. Ct. App. 1992)
The decision of the jury was based on the principles of comparative negligence. McDonald's was found guilty and responsible 80% for the coffee burn. Liebeck was found responsible 20% for the occurrence of the incident. Though there was a warning on the coffee cup, the jury decided that the warning was not large enough nor sufficient. They awarded Liebeck $200,000 in compensatory damages, which was reduced to $160,000, and an additional $2.7 million in punitive damages, which was reduced to $480,000. The decision was appealed by both McDonald’s and Liebeck, and both parties settled out of court for an undisclosed amount less than $600,000.
“In United States v Davis, Earl Davis was shot and while being treated for his gunshot wound, the Howard County Police Department (HCPD) in Maryland collected his clothing and logged it along with records of Davis’s arrest. The next year the nearby Prince George’s County Police Department (PGCPD) suspected Davis of a murder and obtained the clothes that HCPD had previously collected. PGCPD then
Shelley v. Kraemer would be outlined. In addition to the outline of the case, the violations that
No. The North Carolina Eastern District Court ruled that Dillard’s shall pay $50,000 in damages and provide her with front pay and reinstatement.
The firm took the case and went to work. The first hearing ruled that Beatrice Foods wasn’t to be held accountable, just W.R. Grace Company,
The ATRA and CALA are trying to stop minor cases from receiving enormous sums of money which will dampen the economy. The subject matter of these cases varies to some length including but not limited to medical and car insurance. In a case against Rich Mountain Nursing and Rehabilitation Center of Mena, jurors found the defendant, Mena, guilty of malpractice in the death of Margaretha Sauer, a ninety-three year old woman. The non-economic punitive damages cash award for the suffering and pain of the Sauer family to be paid by Mena was seventy-eight million dollars. Punitive damages is one of the issues that the ATRA is trying to combat. If nursing homes continue to have pay large sums for punitive damages, they will not be able to survive. The premium average liability offered by nursing homes has increased from $820,000 in 1999 to $11.6 million in 2001. With the liability premiums continuing to rise, the prospects of profits continue to dwindle. They will have no chance at retaining a profit and thus will have to close. It will also mean that doctors will charge more for their services, which leads to fewer health insurances carrying
Was the amount granted to Burke and Maltbie a reasonable amount based on the damages?
Leibeck, originally sued to cover her out of pocket cost. Mc Donald’s however only offered $800 when her medical bills exceeded $10,000 which Medicaid did not cover. In using the media to mock and distort this case the American Tort Reform Association was able to gain sympathy for changing the way in which civil suits where resolved.
Young argued that the firm had a conflict of interest when it continued to represent other employees of Young’s employer, and when their settlement included a rule barring the firm from suing the employer in the future. Young believed that the firm had waited to pursue her case until its other case was settled. The jury determined that Becker & Poliakoff knew that the case had been dismissed, but withheld that information from Young so they could settle the other case and secure the $2.9 million fee and cost reimbursement in that case. The jury returned a verdict for Young of $394,000 in compensatory damages as a result of Becker & Poliakoff’s breach of fiduciary duty. The total compensatory damages consisted of $144,000 in past lost wages and $250,000 in damages for
Comm., 46 AFTR 2d 80-5938 (628 F.2d 467), (CA-5) 10/20/1980 and comparing it to the second case Betsy Lusk Yeomans, 30 TC 757 (1958), there were strong similarities and differences that denied or entitled a both taxpayers a deduction on their income tax return. Looking at the first case Pevsner v. Comm., the taxpayer filed a joint return income tax and provided evidence that convinced the Tax Court to deduct her clothing and maintained cost of $1381.91 and $240.00. Evidence such as, the taxpayer suffered a heart attack in 1971 and was partially disabled. As a result, it limited the taxpayer social activities and lives a simple life. In reaching to decision, the Tax Court allowed the taxpayer to deduct those expenses, because the apparel was not suited to her private lifestyle. However, the entries were later
Conclusion: Thanks to the landmark case, Marrita Murphy and Daniel J. Leveille, Appellants v. Internal Revenue Service and United States of America, Appellees, there is now no misunderstanding that awards received for damages to personal and professional reputation and mental suffering are included in gross income and are therefore taxable under 26 U.S.C. § 104(a)(2). This determines that because Murray did not suffer personal physical injuries and since gross income as defined by Code Sec. 61 includes compensatory damages for nonphysical injuries, such as those awarded to Murray, his award is in fact taxable [2007-2 U.S.T.C. ¶50,531, (Jul. 3, 2007)].
Next, Mr. Morgan "then filed a formal complaint in the Second Judicial Circuit Court in New Mexico alleging that the coffee was defective because it was excessively, dangerously hot, and because adequate warnings were not provided regarding the risks of the coffee at that temperature" (Hartigan et al., 2014, p. 348). It is essential to recognize that "the claim was based on products liability law, specifically, the Uniform Commercial Code, alleging breach of warranties of fitness for a particular purpose and merchantability" (Hartigan et al., 2014, p. 349). "The complaint requested compensatory and punitive damages (on the grounds that McDonald's exhibited reckless indifference in selling the coffee)" (Hartigan et al., 2014, p. 349). Once Mr. Morgan set the date for the trial, he attempted to settle with McDonald's for $300,000, but the company refused the offer (Hartigan et al., 2014, p. 349). Shortly before the trial, the judge ordered that mediation be used in an attempt to resolve the case. "The mediator recommended a settlement of $225,000, McDonald's refused, and the case went to trial" (Hartigan et al., 2014, p.
The movie, “Hot Coffee”, is a documentary film that was created by Susan Saladoff in 2011 that analyzes the impact of the tort reform on the United States judicial system. The title and the basis of the film is derived from the Liebeck v. McDonald’s restaurants lawsuit where Liebeck had burned herself after spilling hot coffee purchased from McDonald’s into her lap. The film features four different suits that may involve the tort reform. This film included many comments from politicians and celebrities about the case. There were also several myths and misconceptions on how Liebeck had spilled the coffee and how severe the burns were to her. One of the myths was that many people thought she was driving when she spilled the coffee on herself and that she suffered only minor burns, while in truth she suffered severe burns and needed surgery. This case is portrayed in the film as being used and misused to describe in conjunction with tort reform efforts. The film explained how corporations have spent millions of dollars deforming tort cases in order to promote tort reform. So in the film “Hot Coffee” it uses the case, Liebeck v. McDonalds, as an example of large corporations trying to promote the tort reform, in which has many advantages and disadvantages to the United States judicial system.
The jury decided that the plaintiff was entitled to both compensatory damages of $200,000, reduced by $40,000 for her own negligence, and punitive damages totaling $2.7 million (Gerlin, 1994, p.1). Gerlin (1994) goes on to state that “the jury found that McDonald’s had engaged in willful, reckless or malicious conduct” and subsequently used that for the basis of their punitive damages (p. 2). The number settled on was equivalent roughly to two days worth of coffee sales companywide (Gerlin, 1994, p.2). The jury concluded that McDonald’s behaved callously and punished them accordingly (Coffin, 2004, p.4). The jury decided the warning on the cup was insufficient for the hazard (Press, 1995, p.33).